Analysis of the Reasons for Multiple Rounds of Inquiries of Newlife Company under the Registration System

Abstract

The article will use Guangzhou Newlife New Material Co, Ltd., as the case study object after four rounds of inquiries. Through reading pertinent literature, compiling Guangzhou Newlife New Material Co, Ltd.,'s four rounds of inquiries letters and its reply information as well as the prospectus, and applying the AMPS model, the article will analyze the reasons for and the impacts of the enterprises' multiple rounds of inquiries. Under the Science and Innovation Board's registration system, some enterprises will be subject to multiple rounds of inquiries in their initial public offerings. The study's findings demonstrate that businesses must fully and completely disclose all relevant information and make sure that it is clear and simple in order to comply with the Science and Technology Board's (STB) audit process. Inquiry is helpful to alleviate information asymmetry and improve the pricing efficiency of initial public offering (IPO). Companies may improve their business plans and increase their competitiveness in the market by using many rounds of inquiry to gain a deeper understanding of their current state of affairs and prospective threats.